Economists were pleased to hear that the number of people living in the U.S. filing for unemployment benefits dropped by 26,000, leaving the seasonally adjusted number at 319,000, Reuters reported. This sharp decline – in addition to last month's positive employment situation report from the Bureau of Labor Statistics – has led experts to believe that the economy is in a continued state of recovery.
The source noted that for the past three weeks, findings have indicated rising unemployment numbers, but this report was the first to show a significant decrease. The BLS reported that the U.S. gained 288,000 new jobs in April, so economists believe this lower unemployment rate may lead to even higher numbers for the May findings.
According to The Associated Press, this rise in employment may be attributed to the post-winter season, as more people enter the job market following harsh weather and after the Easter holiday. During these times, people may be placed on temporary leave, especially those who work at schools – such as bus drivers, cafeteria workers or other staff members – and they do not have the opportunity to attend work.
Economists predicted the economy would continue to grow at a rate of 3.5 percent throughout the remainder of the quarter.